We have been adamant about cross-JPY for some time, but where in the cycle are we?
The DAILY CHART shows a clear BOTTOMING formation and a RALLY higher. All of CROSS JPY exploded in a similar fashion and it seems to be CONSOLIDATING gains at these levels.
How does the BIGGER PICTURE look ?
The UPSIDE potential is still very attractive, but since this has moved already it could consolidate gains and give back some before a resumption of the TREND.
So where do we ENGAGE ?
We seem to be in a WAVE 4 currently. There are RULES that we like to follow, one of them is that WAVE 4 cannot cross WAVE 1. So this trend is INTACT unless we breach 82.00. We can break it down further and find the MICRO trend, the strategy for now is BUY ON DIPS, but we have to mind the gap as the dips (COUNTER TREND RALLIES) can be DEEP.
The 30-minute chart, used by the more active traders, has a valid minor count. Support comes in at 85.10, so that can be used as a BENCHMARK for measuring RISK CAPITAL. We are watching here and want to see price action, not in a hurry to get involved, but we understand that the TREND is HIGHER and the strategy should be to LOOK FOR ENTRY POINTS for a move to 88+
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